Korean domestic auto parts companies are working with GM for a full-scale attack to the American market.
KOTRA held its 5th event, 'GM-Korea Auto parts Plaza 2010' on 22nd of June for 2 days in conjunction with GM in Warren, Michigan, where the GM headquarters is located.
In this event, 47 domestic auto parts companies participated and executives from GM including more than 200 GM buyers and engineers attended. And KOTRA expects a new export effect, to the amount of US$ 200 million through the 35 cases of export counseling.
KOTRA co-holds the event with GM annually, since 2006. For the past 4 years, it showed high business performance and received orders to the amount of US$ 53 billion. In 2002, only 16 domestic companies supplied to GM and now more than 230 firms deliver their products. In addition, at GM's 'Supplier of the Year 2009, ' among selected 76 companies, 17 domestic companies were included and accounted for 22 percent.
An official from GM showed high level of trust for Korean automobile parts by saying "Korean automobile parts have quality and price competitiveness. We will continue to expand purchases from Korea."
The share of U.S. imports of auto parts has increased from 23 percent in '03 to '08 to 33 percent due to procurement policies of the United States being somewhat flexible compared to Japan and Europe, so it is the open market for domestic firms.
KOTRA officials said that this is a good opportunity since there is a vendor meeting with 50 car buyers from North America. And he also stressed that Korean companies need the strategic cooperation in a long-term joint research and development for eco cars and new models.
SOURCE: KOTRA
